Western Australia Set To Boom In The Coming Years

Growth in Western Australia is set to explode, with forecasts by the Western Australian chamber of commerce predicting 4.5 per cent growth in the current financial year, and a leap to 6 per cent in the following financial year.

The Chamber of Commerce and Industry says Western Australia has performed stronger than expected and this has prompted it to increase its growth rate for the 09/10 financial year from 3 per cent to 3.5 per cent.

John Nicolau, chief economist at the CCI says the state’s growth during the current financial year could reach as high as 4.5 per cent with all the sectors of the economy playing a value role in its development.

Mr. Nicolau expects the growth rate to hit 6.25 per cent during the 12/13 financial year, and growth would continue to be the story for the next half decade, rising slowly and steadily.

Mr. Nicolau added that economic growth in the state was largely built on increased investment by businesses, and robust consumer spending by households.

Growth in the state’s household consumption levels in the current financial year, will be driven primarily through population growth, as people migrate to the state to take advantage of business and job opportunities.

Exports is another large driver of economic growth, and is expected to increase by an eye popping 9.5 per cent during the next couple of years, and a further 10 per cent during 2012/2013.

Despite the rosy outlook for the state, some short term risks remain, in particular a flimsy recovery in the global economy as a results of the European sovereign default crisis.

The spectre of rising interest rates and costs of business has also had a negative impact on both business and consumer confidence during the June quarter, which may act to curtail growth in the next few months.

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